CMS confirms sequestration will reduce Medicare incentive payments

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Medicare electronic health record incentive payments earned by eligible professionals and hospitals will be reduced due to sequestration, the Centers for Medicare & Medicaid Services has confirmed. Incentive payments made through the Medicare EHR Incentive Program will be subject to mandatory payment reductions of 2 percent, as required by the Budget Control Act of 2011.

The reductions will be applied to any Medicare EHR incentive payment for a reporting period that ends on or after April 1, 2013. They will not apply to Medicaid EHR incentive payments, which are exempt from the cuts. Website